Social VAT

In recent weeks, the term Social VAT has appeared in the presidential campaign and more precisely in the period between two rounds of legislative elections .
Many questions from the French have erupted since the announcement of this new measure disclosed by the Fillon government .
The Social VAT is a reform of the financing of social protection, its funding is currently done by employer contributions, levied on wages. The goal of  social VAT is to shift part of this financing to consumption, via an increase in the VAT rate., which is currently 19.6% in France.
An increase in Social VAT should make it possible to change growth, by offering more competitiveness to companies via a reduction in labor costs.
If this measure is applied, it will not come into force until 2009.